Understanding Adversary Proceedings and Other Bankruptcy Terms
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Understanding Adversary Proceedings and Other Bankruptcy Terms

Understanding Adversary Proceedings and Other Bankruptcy Terms
August 01, 2022

When you are planning to file for bankruptcy, it is critical to learn more about U.S. bankruptcy law and to understand some of the specific terminology that you are likely to encounter. There are many complicated and confusing legal words and phrases that can arise in individual bankruptcy cases. Our Northwest Indiana bankruptcy lawyers want to make sure you have information about some of the key terms you are likely to encounter in your Chapter 7 or Chapter 13 bankruptcy case.

Adversary Proceedings

An adversary proceeding will not occur in every bankruptcy case. Rather, this is a type of proceeding that is separate from your primary bankruptcy case. This term refers to a lawsuit that one of the plaintiffs (i.e., a creditor or the trustee, or the debtor in some cases) may file in order to contest a specific type of bankruptcy relief, to contest the dischargeability of a specific debt, or to resolve another issue in dispute. Your bankruptcy filing is not in and of itself an adversary proceeding.

Automatic Stay

The automatic stay is a type of injunction that protects debtors in bankruptcy filings. It is an injunction that applies as soon as a debtor files for bankruptcy, and it stops all creditors and debt collectors from taking new legal action or continuing with existing actions to collect on a debt. The automatic stay also prohibits creditors or debt collectors from even calling a debtor after that debtor has filed for bankruptcy. The automatic stay can only be lifted by the court.

Discharge and Dischargeable Debt

Discharges refers to a wiping out or eradication of your debt. Many types of debts are dischargeable, although there are certain kinds of debts that cannot be discharged.

Exemptions

Exemptions allow you to keep exempt assets in a Chapter 7 case (or to exclude assets from a Chapter 13 repayment plan). In other words, you get to keep exempt assets in a Chapter 7 case — these assets cannot be liquidated. In Indiana, a debtor must use state exemptions in a bankruptcy case under Indiana law. There are a wide range of exemptions that you should discuss with your lawyer, including a homestead exemption to exempt equity in your home, a motor vehicle exemption, a wildcard exemption, and many others.

Means Test

The means test is what you must pass in order to prove your eligibility for Chapter 7 bankruptcy. It is designed to show that you do not have sufficient income or means to repay your creditors and that a liquidation bankruptcy is appropriate.

Seek Advice From a Northwest Indiana Bankruptcy Attorney Today

Bankruptcy law is complex, and many of the terms can be confusing. It can be easy to make minor errors that may impact your ability to have your debts discharged. As such, it is essential to work with a bankruptcy attorney on your case. To ensure that your bankruptcy case goes as smoothly as possible, you should get in touch with the Northwest Indiana bankruptcy lawyers at our firm who can assist you. Whether you have questions about specific bankruptcy terms or need representation for your bankruptcy filing, our firm is here to help. Contact the Law Office of Kevin M. Schmidt to learn more about our services.

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Our Phone Number219-756-0555
Contact via Emailinfo@kmslawoffice.net
Our Location200 E. 80th Place
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Merrillville, IN 46410
We are a debt relief agency. We help people file for bankruptcy relief under the bankruptcy code. This information is designed for general information only. The information presented should not be construed to be formal legal advice nor the formation of a lawyer/client relationship. Past results and testimonials are not a guarantee, warranty, or prediction of the outcome of your case, and should not be construed as such. Past results cannot guarantee future performance. Any result in a single case is not meant to create an expectation of similar results in future matters because each case involves many different factors, therefore, results will differ on a case-by-case basis. By providing certain contact information herein, you are expressly authorizing the recipient of this message to contact you via the methods of communication provided.
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